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A Massachusetts-based awning manufacturer will pay $9.25 million and overhaul its compliance protocols to settle civil claims that it failed to report hazardous defects in its awning covers, a lapse that allegedly led to multiple injuries and at least one fatality.

SunSetter Products LP reached a consent decree with the U.S. Department of Justice on Tuesday, finalizing a settlement months after announcing its intent to resolve the dispute in March.

Government Slams SunSetter’s Delay in Reporting Defect

"This settlement underscores the necessity for companies to prioritize consumer safety and fulfill their legal duty to disclose dangerous defects in a timely manner," Massachusetts U.S. Attorney Leah B. Foley stated Wednesday. "SunSetter's failure to do so had devastating consequences."

Despite the high stakes, an attorney representing SunSetter did not immediately respond to requests for comment.

Defective Awning Covers Linked to Accidents, Death

The government alleges that SunSetter delayed reporting a known defect affecting 270,000 awning covers, which could unexpectedly spring open with enough force to knock over unsuspecting individuals attempting to remove them.

Though SunSetter formally reported the flaw in 2017, federal investigators contend that the company was aware of the issue as early as 2012. Internal simulation testing in 2015 further confirmed the defect, yet no timely disclosure was made to regulators, the complaint states.

Legal Teams and Compliance Overhaul

The government’s case is being led by Brett Ruff and Nicole Frazer of the U.S. Department of Justice’s Civil Division, alongside Anuj Khetarpal from the U.S. Attorney’s Office for the District of Massachusetts.

SunSetter is represented by legal heavyweights including Daniel Grooms, Matthew Howsare, Matthew Kutcher, Reed Smith, Shamis Beckley, and Shawn Skolky of Cooley LLP.

As part of the settlement, SunSetter has agreed not only to the hefty financial penalty but also to implement a stringent compliance program aimed at preventing future violations and ensuring the timely reporting of potential safety hazards.